Legal Notice for Recovery of Money (Outstanding Dues) Format
A money recovery legal notice is a formal written demand asking a debtor to pay outstanding dues within a stated period, usually 15 days. It records the debt, invokes the Indian Contract Act, 1872, and is the standard precursor to a civil suit or summary suit under Order XXXVII of the Code of Civil Procedure.
When to send this notice
Use this notice when a person or company owes you money — unpaid invoices, a friendly loan, advance not returned, or a defaulted account — and informal reminders have failed. Sending it before filing suit demonstrates a bona fide demand, may prompt settlement, and is expected in a summary suit for a debt or liquidated demand.
Statutory basis
A claim for money is founded on the contract or acknowledgment of debt under the Indian Contract Act, 1872. Recovery suits for money or liquidated demands are commonly filed as summary suits under Order XXXVII of the Code of Civil Procedure, 1908. Under the Schedule to the Limitation Act, 1963, most money-recovery suits carry a three-year period, but the starting point depends on the article: the date of delivery for the price of goods sold without a fixed credit period (Article 14), the date the loan was made for money lent (Articles 19 and 21), the date of breach for compensation under a contract (Article 55), or when the right to sue accrues under the residuary Article 113. A written acknowledgment of liability signed by the debtor (Section 18), or a part-payment acknowledged in the debtor’s handwriting or signed writing (Section 19), made before the period expires starts a fresh three-year period.
[ON THE LETTERHEAD OF THE ADVOCATE] By Registered Post A/D & Email Date: [DD/MM/YYYY] To, [Full Name / Company Name of Debtor] [Complete Address] Subject: Legal notice for recovery of Rs. [Amount] together with interest. Sir/Madam, Under instructions from my client, [Client Name], of [Client Address], I hereby serve upon you the following notice: 1. That you availed [goods supplied / services rendered / loan of Rs. Amount] from my client vide [invoice/agreement no.] dated [DD/MM/YYYY]. 2. That a sum of Rs. [Amount] remains outstanding and payable by you to my client, despite repeated reminders dated [dates]. 3. That you have failed and neglected to clear the said dues, causing loss to my client. I therefore call upon you to pay the outstanding sum of Rs. [Amount] together with interest at [rate]% per annum within fifteen (15) days of receipt of this notice, failing which my client shall initiate appropriate civil proceedings, including a summary suit under Order XXXVII of the Code of Civil Procedure, 1908, for recovery of the said amount with interest and costs, entirely at your risk and expense. [Advocate Name] [Enrolment No. / Contact]
Replace every [placeholder] with your own details before use.
How to send this legal notice
From draft to proof of delivery and the next legal step.
Compile proof of the debt — invoices, agreement, ledger, acknowledgment, or loan record.
Verify the claim is within the three-year limitation period, counted from the date fixed by the relevant Limitation Act article or from a written acknowledgment or part-payment made before the period expired.
Draft the notice stating the amount due, source of the debt, interest claimed, and a 15-day payment window.
Have it issued on advocate letterhead and signed.
Serve it by Registered Post A/D and email, retaining the postal receipt and delivery proof.
If unpaid, file a civil or summary suit under Order XXXVII CPC within limitation.
Frequently asked questions
Is a legal notice mandatory before a money recovery suit?
For most private-party recovery suits a prior legal notice is not strictly mandatory, but it is strongly advisable — it evidences demand, encourages settlement, and is customary in summary suits. A statutory notice is required in specific cases, such as suits against the government under Section 80 CPC.
What is the time limit to recover money in India?
Under the Limitation Act, 1963, most money-recovery suits must be filed within three years. The start date depends on the claim (for example delivery of goods, the date a loan was made, or the date of breach). A written, signed acknowledgment of the debt or a recorded part-payment made before the three years end restarts the clock (Sections 18 and 19).
Can I claim interest in a recovery notice?
Yes. You can demand interest as agreed in the contract, or a reasonable rate where no rate was agreed. The claimed rate should be clearly stated in the notice and later justified before the court.
Related notice formats
Cheque Bounce Legal Notice (Section 138 NI Act) Format
Debt & RecoveryLetter of Demand Format (Letter of Demand vs Legal Notice)
Debt & RecoveryLegal Notice for Recovery of Loan (Friendly Loan) Format
Debt & RecoveryMSME Delayed Payment Legal Notice Format (MSMED Act)
Debt & RecoveryLegal Notice for Non-Payment of Freelance Invoice Format
Property & TenancyEviction Notice to Tenant (Notice to Quit) Format
From template to tracked notice
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